17th Aug 2018 08:06
LONDON (Alliance News) - Biffa PLC on Friday said it purchased waste & recycling solutions provider Weir Waste Services Ltd for GBP16.2 million and plans further acquisitions.
The waste management company said it will fund the acquisition through existing cash and debt facilities.
Weir Waste Services operates in Birmingham and the West Midlands region, and has a workforce of 120 people, Biffa said. For the year to the end of May 2017, it generated revenue of GBP16.1 million, earnings before interest, taxes, depreciation, and amortization of GBP2.2 million, and and operating profit of GBP1.1 million.
Biffa plans to integrate Weir Waste Services into its Industrial & Commercial division, enabling the combined business to broaden its customer offering and to deliver operational and procurement benefits.
The company said Weir Waste Services will complement its existing commercial collection business, which serves 1,600 customers, and operates a frontline fleet of 45 vehicles.
In addition, Biffa said it agreed to purchase a further three companies in the current financial year for GBP3.9 million. The company said it intends to incorporate all three acquisitions into its Industrial & Commercial division.
The acquisitions comprise of commercial waste collection & recycling firms H&A Recycling Ltd, Bisset Waste Management Ltd and Vecta Group Ltd.
"The acquisitions we have announced today demonstrate our ongoing ability to identify and execute value accretive acquisitions across the UK," said Chief Financial Officer Michael Topham.
"The Weir Waste business significantly strengthens our presence and customer offer in Birmingham and the Midlands while the other acquisitions further enhance our platform in their respective markets," added Topham.
Shares in Biffa were trading 4.1% higher early on Friday at 244.00 pence each.
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